August 15, 2008
Jakarta sees 6.1 percent growth in second quarter
The growing investment in transportation and construction sectors pushed Jakarta's economy to grow by 6.1 percent in the second quarter compared to a year earlier, the Jakarta Statistics Agency reported.
Head of Jakarta Statistics Agency Djamal said sectors seeing the highest growth were transportation and communications (14.6 percent), followed by construction (7.65 percent) and electricity, gas and tap water (7.3 percent).
"In the second quarter, almost 50 percent of the investment was used for construction. The rest was used for transportation and heavy equipment," Djamal said.
Of the transportation and communications sector, Djamal said that railway transportation grew by 4.32 percent, while growth in the communications sector was 4.09 percent.
Economic output in the second quarter generated Rp 165.15 trillion in value, with major contributors mainly from financial services, trade, hotel, restaurant, service and manufacturing sectors which accounted for 65.15 percent of the total.
From January to June, the city's economy grew by 6.2 percent compared to the same period last year.
"The full year economic growth target is set at 6.3 percent. Until the first semester, the city has reached 6.2 percent. To achieve the full year target, the city's economy will have to continue to grow by more than 6 percent until the end of the year," Djamal said.
City Secretary Muhayat said he was optimistic the city would be able to achieve the targeted growth, after 6.2 percent growth during the first semester.
"The service sectors are the most significant contributors. To improve on investment, we should maintain safe and conducive conditions in the city especially during the campaign period for the general election," he said.
The city administration has targeted an annual investment growth rate of 15 percent until 2012 to achieve an expected 7.32 percent economic growth rate in the same period.
Until 2007, the number of approvals for new projects in Jakarta was 9,364, consisting of 1,094 domestic investments and 8,270 foreign investments.
Of these, only about 71 local investors and 566 foreign investors submitted their investment reports to the Jakarta bureau of capital management and regional monetary management.
Jakarta's economy in 2007 grew by 6.39 percent compared to the year before. The transportation and communications sectors recorded the highest growth (14.65 percent) while the mining sector was the lowest (0.46 percent).
Last year, over the whole 12 months, the Jakarta economy generated Rp 565.04 trillion, with the biggest expenditure components being household consumption 55.97 percent, investment 37.58 percent and net exports 2.77 percent. [The Jakarta Post]
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